In the framework of an oligopoly, strategy that can work like a silent form of cooperation always match other cartel firms' price cuts, but don't match price increases.
What is oligopoly?
- A market structure known as an oligopoly has a small number of enterprises, none of which can prevent the others from having a large impact.
- The market share of the major companies is calculated using the concentration ratio.
- A market with a monopoly has just one producer, a duopoly has two businesses, and an oligopoly has three or more businesses.
- The maximum number of firms in an oligopoly is unknown, but it must be low enough such that each firm's activities have a major impact on the others.
In the past, oligopolies have existed in the steel industry, the oil industry, the railroad industry, the tyre industry, grocery store chains, and the wireless industry.
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